budget for 75,000 units using the information listed below: 25,000 Units 50,000 Units 75,000 Units Sales $375,000 $750,000 Cost of Goods Sold $250,000 $500,000 Gross Profit on Sales $125,000 $250,000 Operating expenses ($10,000 of it is fixed) $35,000 $60,000 Operating Income $90,000 $190,000 Income Taxes (30% of operating income) $27,000 $57,000 Net Income $63,000 $133,000 Assume that cost of goods sold and any variable operating expenses vary directly with sales and that income taxes remain constant at 30%. 6.) Del Sol Healthcare is considering two capital investment proposals. The information for both projects is listed below: Proposal #1 Proposal #2 Cost of the investment $250,000 $300,000 Estimated salvage value $25,000 $30,000 Average estimated net income $50,000 $60,000 Calculate the return on average investment for both proposals and discuss which one would be the best option for investment. ==============================================
ACC 400 Week 1 Assignment from the Textbook ( BE16.9, E16.1, E16.2, E16.3, E16.6)
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